VettaFi's Head of Research Todd Rosenbluth discussed the NEOS Nasdaq 100 High Income ETF (QQQI) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis visit the Tax Efficient Income Channel.
The NEOS Nasdaq 100 High Income ETF (QQQI) crossed its one-year milestone at the end of January. The fund continues to capture investor attention with its tax-efficient, income-oriented approach to tech investing and a trailing 12-month distribution rate of 13.76%.
Finding stable income is challenging; covered-call ETFs like NEOS NASDAQ-100(R) High Income ETF offer consistent payouts regardless of market direction. QQQI has outperformed with nearly 21% returns, a 14.02% distribution yield, and a reasonable 0.68% expense ratio since its inception in January 2024. QQQI's two-part options strategy and diversified holdings have preserved net asset value while delivering regular monthly payouts between $0.59 to $0.64 per share.
NEOS Investments expanded its options-based income ETF lineup in the real estate sector today. The firm launched the NEOS Real Estate High Income ETF (IYRI), broadening its options income strategy coverage of asset classes.
NEOS Investments expanded its options-based income ETF lineup in the real estate sector today. The firm launched the NEOS Real Estate High Income ETF (IYRI), broadening its options income strategy coverage of asset classes.
The NEOS Nasdaq-100 High Income ETF aims to generate income while holding Nasdaq 100 stocks, primarily mega-cap tech companies. QQQI reduces volatility by limiting upside potential and paying out regular income through selling options against the Nasdaq 100 index. NDX options are advantageous due to no assignment risk and tax efficiency, being taxed at a lower rate than ordinary options income.
Funds that generate high yields from mega-cap AI powerhouses are a very attractive portfolio diversification instrument for income investors. QQQI and QYLD are two such funds. We compare them side-by-side and share our view on their suitability for inclusion in an income portfolio.
Tech investors looking to diversify their portfolio and earn high monthly income would do well to consider the NEOS Nasdaq 100 High Income ETF (QQQI). Launched at the end of January, the fund currently offers total returns more than 20% returns year-to-date.
QQQI's unique call option strategy generates high income without capping upside potential, making it superior to traditional covered call ETFs. The ETF has shown significant growth, with AUM increasing by 65% in 3.5 months, and it offers a forward 12-month yield of 13.67%. Market conditions in 2025, including lower interest rates and potential corporate tax cuts, are expected to favor technology stocks, boosting QQQI's performance.
The NEOS NASDAQ-100(R) High Income ETF uses a data-driven call option strategy to enhance yield, offering a 14.35% distribution rate. QQQI combines passive NASDAQ-100 exposure with options trading, generating monthly income but capping upside potential during market rallies. The ETF outperformed similar funds due to its flexible call option strategy and credit call spreads.
NEOS Nasdaq-100 High Income ETF (QQQI) offers a high dividend yield of 14% and distributions are paid on a monthly basis. QQQI actually holds the underlying equities, which reduces overall risk and provides a meaningful amount of tech exposure. The distributions are supported by the premiums collected from the underlying option strategy. QQQI implements an OTM option strategy which allows for capital appreciation.
QQQI's dynamic options strategy and occasional call spreads enable it to outperform other NASDAQ 100 buy-write funds, yielding 15.16% without sacrificing total returns. QQQI's tax advantages include 60/40 long and short-term capital gains treatment and return of capital distributions, reducing tax burdens for investors. The math must add up, however. The larger distributions are offset by a smaller gain in market value.